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IMF Downgrades Outlook For World Economy

Rising interest rates and trade war

The International Monetary Fund is downgrading its outlook for the world economy, citing rising interest rates and growing tensions over trade.

The IMF said Monday that the global economy will grow 3.7 percent this year, the same as in 2017 but down from the 3.9 percent it was forecasting for 2018 in July. It slashed its outlook for the 19 countries that use the euro currency and for Central and Eastern Europe, Latin America, the Middle East and Sub-Saharan Africa.

The report comes on the eve of the Oct. 12-14 meetings in Bali, Indonesia, of the IMF and its sister lending organization, the World Bank.

http://www.apnews.com

Trump wants to impose tariffs on $200 billion in Chinese imports

The US dollar, Chinese yuan fell

U.S. President Donald Trump is prepared to quickly ramp up a trade war with China and has told aides he is ready to impose tariffs on $200 billion more in Chinese imports as soon as a public comment period on the plan ends next week, Bloomberg News reported on Thursday.

The White House declined comment on the Bloomberg report, which cited six unidentified sources, and deflated markets. The S&P hit session lows, and the U.S. dollar, Chinese yuan and U.S. Treasury yields also fell. Trump has credited his electoral success to his hard line on trade, which he has argued hurts U.S. workers and favors foreign competitors. Washington is demanding Beijing improve market access and intellectual property protections for U.S. companies, cut industrial subsidies and slash a $375 billion trade gap.

The world’s two largest economies have already applied tariffs to $50 billion of each other’s goods in a tit-for-tat trade war. Talks aimed at easing tensions ended last week without major breakthroughs. The new proposed 25 percent tariffs would affect consumer products including home building supplies, technology products, bicycles and apparel.

http://www.reuters.com

Inflation Is About to Appear ‘With a Vengeance,’

More Inflationary Pressures Building Up

Paul Tudor Jones said inflation is about to appear “with a vengeance” and may force the new Federal Reserve chair to accelerate interest-rate hikes. The hedge fund manager said policy has focused on a “low inflation problem” and years of near-zero rates amid economic expansion will have “painful” consequences. Policy makers should have been more aggressive in tightening policy and “rejecting the fiscal impropriety associated with this most recent tax cut,” he said.

http://www.bloomberg.com...  Febuary 07, 2018

Britain’s economy is already weaker because of Brexit

Business investment is being affected by uncertainties

The Bank of England didn’t mince words today on the effect of Brexit on the British economy. “Brexit-related constraints on investment and labour supply appeared to have been reinforcing the marked slowdown,” the central bank wrote in its inflation report.

The BOE added that while Britain was being held back by Brexit, the rest of the world was heading into a period of strong growth. “Uncertainties associated with Brexit were weighing on domestic activity, which had slowed even as global growth had risen significantly,” the bank said.

http://www.msn.com…  Fri.,  03  November 2017

Saudi Arabia needs oil at $70 to break even

The break-even is a measure of the crude price needed to meet spending plans

Saudi Arabia, OPEC’s biggest oil producer, is also a leader when it comes to slashing the crude price the country needs to balance its budget.

The kingdom will need oil to trade at $70 a barrel next year to break even, the Washington-based International Monetary Fund said Tuesday in its Regional Economic Outlook for the Middle East and Central Asia. That’s down from a break-even of $96.60 a barrel in 2016, the biggest drop of eight crude producers in the Persian Gulf. The break-even is a measure of the crude price needed to meet spending plans and balance the budget.

http://www.arabianbusiness.com…  Thu.,  02  November 2017

Bitcoin Surges

World’s Biggest Exchange Announces Plans for Futures

The allure of bitcoin was too much for CME Group Inc. The world’s largest exchange owner reversed course today and said it plans to introduce bitcoin futures by the end of the year, only a month after dismissing such a plan. The largest cryptocurrency, which has surged more than sixfold this year, climbed to a record high after the announcement.

http://www.bloomberg.com…  Wed.,  01  November 2017

Biotech stocks stand above the rest

Bank Of America is bullish on the biotech industry

Right now, it seems like there’s opportunity in the stock market no matter where you look. Tech companies are surging to yet another series of record highs following blockbuster earnings reports for many of the sector’s mega-cap titans. Wall Street strategists are getting more bullish on banks as rate hikes loom. And that’s not to mention the stocks set to benefit most from tax reform.

But Bank of America Merrill Lynch sees one industry standing above them all: biotech. To them, drug developers offer an ideal combination of attractive pricing and upside growth — unlike their tech stock counterparts, which are sitting near the most expensive on record. BAML also likes the upside offered by biotech based on how traders are currently positioned on the sector, especially when compared to the crowded tech trade.

http://www.businessinsider.com…  Tue  31  October 2017

Asset management industry on the edge of fundamental shifts

Asset management industry is going to boom in the next decade

The asset management industry stands on the edge of a number of fundamental shifts that will shape the future of the industry… Most asset managers have afforded themselves little time to bring the future into focus and the way in which many of them will operate in 2020, will be significantly different compared with today. Asset Management 2020 – A Brave New World, sets out how the operating landscape for asset managers will change by 2020 and explains how asset managers can prepare for the challenges ahead and turn them into competitive advantages.

The report’s key messages are highlighted below. They are presented as a series of predictions for 2020, to provide guidelines for asset management industry participants to prepare their operating models, people and processes for the changes ahead. What are the mega-trends and the future of the asset management industry?

http://www.pwc.com…  Mon  30  October 2017

Amazon, Google, Microsoft and Intel find billions more in profit

Amazon, Google, Microsoft and Intel increased profits by more than $2 billion and revenue by $19 billion in just one year

Technology companies have been dominating the news and investors’ attention, and a series of earnings reports Thursday afternoon showed why.

Four of the most valuable tech companies in the world–Amazon.com Inc. (AMZN) ,Google parent company Alphabet Inc. (GOOGL), Microsoft Corp. (MSFT) and IntelCorp.(INTC) –destroyed expectations for profit and revenue in third-quarter reports Thursday afternoon, collectively bringing in about $2.2 billion more profit and $19 billion more revenue than the same quarter a year ago. Stock in those four companies jumped across the board in late trading, which would make them worth even more than the combined market cap of nearly $2 trillion they enjoyed at the end of Thursday’s trading session.

http://www.morningstar.com…  Fri  27  October 2017